Use the Information Given Below at 30 June 2016 to Answer

question 29

Multiple Choice

Use the information given below at 30 June 2016 to answer the following question.

What is the balance of shareholder equity?

• A) $200 000
• B) $360 000
• C) $660 000
• D) None of the answers provided

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Definitions:

Direct Labor

Workers or employees that are directly involved in the production of goods or services.

Factory Overhead

Costs incurred during the manufacturing process that are not directly tied to the product, including utilities, depreciation of equipment, and salaries of maintenance staff.

Equivalent Units

A calculation used in cost accounting to express the amount of work done on partially finished goods in terms of fully completed units.

First-In, First-Out

An inventory valuation method that assumes goods are sold in the order they are acquired, with the cost of the oldest products being used to calculate cost of goods sold first.